Budget 2023 CGT – Separation and Divorce

Posted on: 16/03/2023

Category: For you

Having been shrouded in mystery for the past few weeks the budget yesterday has finally clarified the position for CGT on divorce and separation.

As previously announced, for disposals from 6 April 2023:

• Separating spouses or civil partners have up to three years after the year they cease living together in which to make no gain/no loss transfers.
• No gain/no loss treatment also applies to assets that separating spouses or civil partners transfer between themselves as part of a formal divorce agreement.
• A spouse or civil partner who retains an interest in the former matrimonial home has the option to claim private residence relief (PRR) when the property is sold.
• Some individuals who have transferred their interest in the former matrimonial home to their ex-spouse or civil partner are entitled to receive a percentage of the proceeds when that home is eventually sold. They can then apply the same tax treatment to those proceeds, when they are received, that applied when they transferred their original interest in the home to their ex-spouse or civil partner.

With grateful thanks to Bishop Fleming LLP for the above information